Process of Planning Premises

Since environmental factors affect affect business plans (also non- business plans) to a great extent, premises must be developed rationally and scientifically through the following process.

1. Selection of the premises:

There are innumerable factors in the environment that affect the organizations. All of them do not affect operations of the business enterprise. Top managers should select the premises which have direct impact on developing organizational plans.

2. Development of alternative premises:

Since factors affecting organizational plans cannot be perfectly predicted, managers must develop alternative premises i.e. plans under different sets of assumptions about the future events. This helps in developing contingent plans.

3. Verification of premises:

Planning staff at different levels of different departments make plans according to their judgment. These premises are then sent to top executives for their approval. The premises’ which involve both staff and line managers are more consistent than those that are developed by executives alone.

4. Communication of premises:

After the premises are developed, they (supported by budgets and Programmer) are communicated to all those concerned with development of plans.

Planning premises, thus, help to develop sound plans followed by strategies, policies. Procedures etc. Which help in effective implementation of plans.

For more help in Process of Planning Premises please click the button below to submit your homework assignment.